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External Environment Analysis

Please read the Blockbuster case, case pages 71-83 in your textbook.

Please address the following issues:

1. Complete an external environment analysis of Blockbuster, including an industry and competitor analysis.

2. Complete a competitive rivalry analysis of Netflix. Provide specific recommendations as to how Blockbuster should competitively respond.

3. Identify the key problems Blockbuster is having with achieving success with its recent acquisition of Movielink. Provide specific recommendations on how Blockbuster should rectify these problems.

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External Environment Analysis

Please read the Blockbuster case, case pages 71-83 in your textbook.

Please address the following issues:

1. Complete an external environment analysis of Blockbuster, including an industry and competitor analysis.
The Social environment of Blockbuster is one in which the people are used to downloading movies through the internet and watching them on their TV sets. The current lifestyles support the downloading of moves on DVDs. Further, there are education based as well as religious videos that can be downloaded and watched. The youth segment is open to downloading moves on DVDs but they do not want to rent physical DVDs and even less buy them.
The current technology available with potential customers makes it easy to download movies on DVDs. Fast internet connections, broadband access, and DVD writers on most computers/laptops have made it easy to download movies on DVDs. To survive the technological change Blockbuster must acquire the ability to enable its customers to download movies on DVDs and view them.
Currently, the weak economic situation has increased the importance of being able to download moves on a DVD. This option is perceived to be less costly than physically buying movie DVDs or renting them. Most importantly, the current cut in incomes has led to a situation where downloading movies from the internet is a preferred option compared to physically buying DVDs.
Ecologically, downloading movies on repeated use DVDs ...

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